Saturday, January 1, 2022

2021 Year End Dividend Review and Top Performers

In November 2021 I received $1709 and December 2021 was $2281 US Dollars. 

Ticker Total Taxable 401k
T $245.54 $244.96 $0.58
CLX $236.52 $236.52
PG $192.12 $178.14 $13.98
O $173.68 $173.68
GIS $155.35 $113.04 $42.31
APD $159.57 $159.57
GD $141.40 $141.40
CL $102.33 $88.41 $13.92
SBUX $96.36 $78.85 $17.51
ABT $125.43 $125.43
MA $40.98 $40.98
COST $39.22 $39.22
INTEREST $0.52 $0.52
$1,709.02 $1,447.04 $261.98

Ticker Total Taxable 401k
JNJ $309.35 $302.51 $6.84
HD $261.72 $229.29 $32.43
NEE $238.79 $181.68 $57.11
MMM $226.87 $226.87
KO $189.05 $189.05
WEC $186.73 $166.97 $19.76
O $181.64 $181.64
MSFT $124.87 $90.31 $34.56
D $114.90 $75.97 $38.93
V $102.33 $81.36 $20.97
BDX $90.51 $90.51
MCD $75.59 $75.59
HON $68.07 $68.07
CHD $76.01 $59.30 $16.71
INTEREST $35.19 $1.10 $34.09
$2,281.62 $1,838.58 $443.04

The dividend growth below shows how much was made so far from dividend payments since I had started in 2013.

The dividends have stopped growing in 2021 because I stopped contributing capital, as I was holding all my capital. Going into 2022 my dividends will decrease since I sold off some stock to accumulate a larger cash position, this likely will go into funding a home. In 2022, the dividend income will start an upward trajectory back up as I plan to add my cash coming in from my vocation into investing in more dividend paying stocks.

In 2021 full year, I received $27,089 US Dollars in dividends. This is a record, and it has come from years of buying up dividend stocks. 

In 2021, my portfolio's stock position averaged 6.07% dividend increase with a 2.45% dividend yield. Since all the dividend payments were reinvested back into the stocks that paid them, there is a double compounding affect to income.  As a result, 2021's dividend growth total is around 8.67%. This growth is lower than previous years, recently the dividend growth has slowed. 

Below the table shows the growth of my portfolio's stock position over the years I have been investing. The table is purely a dividend growth calculation from the position's themselves; i.e. the growth from each share growing by reinvesting the dividends it paid out that year as well as the company's dividend raise that year organically. These dividend increase calculations do not consider any additional capital I put in, and is a measure of the portfolio's ability of the portfolio to grow income on its own without any additional capital injection. 

2020 was hit by ROST and TJX discount retail stores cutting their dividend to zero during COVID. Dominion (D) also cut its dividend by 1/3 in 2020. These three impacted the dividend growth rate heavily. In 2021, Dominion, General Mills, and AT&T did not raise their dividend so it was stuck at 0% raise for these three positions; I thankfully did not have any dividend cuts in 2021. I feel that since interest rates are so low, dividend income and growth will remain very small, as the US Treasury baseline is so low to begin with. All returns in the stock market will be very low going forward due to the new ultra low interest rate environment where too much money is chasing too few deals.

Year Dividend Growth Dividend Yield Total Income Growth
2021 6.07% 2.45% 8.67%
2020 2.79% 2.55% 5.41%
2019 7.26% 2.62% 10.08%
2018 11.70% 2.76% 14.77%
2017 7.80% 2.62% 10.62%
2016 8.54% 2.76% 11.53%
2015 7.10% 2.94% 10.24%
2014 7.95% 2.81% 10.98%

The below list shows my total annual income made from dividends and how my assets have grown from continuous contribution from my salary income, dividend reinvestment, and self growth of the portfolio. The amounts are in US Dollars.

Year Dividend Income Portfolio Size Year End
2021 $27,089.39 $1,339,636.37
2020 $22,704.34 $1,025,323.57
2019 $18,071.28 $838,354.09
2018 $12,563.45 $581,613.90
2017 $8,762.81 $441,462.75
2016 $5,234.51 $289,188.71
2015 $3,270.62 $153,543.04
2014 $854.07 $72,428.42
2013 $0.00 $6,514.24

Going into 2022, since I sold stock to have cash to fund a house, I expect my 2022 income to go back to around $24 to 25K USD a year. And from 2023 on after the house situation is settled, I will start to grow to a new peak. The portfolio has grown very well over the years. 

I will admit, I am no longer investing as hardcore as I used to back in my 2013 to 2016 years. My lifestyle in the beginning was very spartan and lived like a poor college student. I saved every penny I had and often skimped on many of life enjoyments to buy more share of stock every 2 weeks I received my paycheck. 

That sense of urgency now is no longer as strong as it used to be, as now I do set aside some cash to enjoy my life and even am making an effort to purchase a home now instead of skimping on my housing expenses. I am also not in so much of a rush to buy more shares if I feel the market is over-valued. I am content with waiting on hundreds of thousands of dollars of cash, as I already have almost a million dollars in stock equity already. 

I feel eventually, I have to enjoy the fruits from my career and investments and after I hit the $1M mark, I feel the portfolio has hit a point where it's starting to grow by itself in a strong way. My bi-weekly cash contribution from my job can only move the needle up so much, right now it's up to my investment decisions to move the assets forward.

In 2021, I summarize below the top performers, and also highlight a few stocks that have bumped up recently in the last quarter of 2021, the defensive businesses like consumer staples and healthcare and utilities sector saw a large leg up in the end of 2021. Overall, 2021 was a very strong year for capital appreciation, which is rather bad news for those wanting to add more stock positions. The S&P500 gained around 28.79% in 2021 which is huge and I feel likely not sustainable going forward. A correction back to more reasonable valuations is needed.

Top Performers of 2021:
56.24% Home Depot
51.21% Microsoft
50.67% Costco
40.08% General Dynamics
39.94% Automatic Data Processing
28.54% Abbott Laboratories
24.93% McDonald's
21.05% Illinois Tool Works
21.01% NextEra Energy
18.91% Realty Income

Key Performers in 2021 Q4:
Colgate Palmolive

Procter & Gamble

Coca Cola

Church and Dwight


Happy Investing

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